Every business can boast a list of relevant and useful literature. Business in financial markets is no exception.
True, books about trading and trading have several “buts”. These “buts” are connected with the fact that markets are constantly evolving and changing. Although the laws of price movement remain unchanged, books on practical methods (for example, technical analysis or candlestick patterns) do not provide effective solutions. To operate successfully, financial markets require unconventional thinking. We decided to list the best books on trading for beginners that will help form such a view.
Many traders from all over the world cooperate and to conduct international financial transactions they need a service that will allow them to quickly and reliably make payments and transfers. Some of the services allow you to create an online business account uk, which will allow your team or trading firm to make payments around the world easily. After all, trading is now not just a way to make money, it is a huge industry with multi-million dollar companies. However, there is also a place for a single trader here.
One good trade. Mike Bellafiore
Mike Bellafiore is a co-owner of SMB Capital, a proprietary trading company on Wall Street. He is a day trader (at least he was at the time of writing) on the American stock market and futures market. Although day trading is a complicated method of making money (in modern realities), the book contains useful values for any approach to the financial markets
“One Good Trade” is a book about trading for beginners. It describes the everyday life of traders – how they make decisions, what problems they experience, and what actions lead to positive results (or negative ones). The main focus is on the principles of effective money management – in part, this book can be classified as a book on risk management in trading. The author is trying to convey this: no matter how your trading day/week/month turns out, you need to strive for one good trade (which should cover small losing trades). These are the types of trades that help pull your capital curve up.
Fooled by chance. Nassim Taleb
Taleb can be described as a trader, mathematician, philosopher, statistician, and teacher. In this article, we will highlight one of his books, which can be very closely compared with financial markets – “Fooled by Randomness”.
The book does not contain any practical methods – it describes the principles of human psychological behavior, and, even more simply, the specifics of the human ego. We want to be right. If something goes according to our plan, then everyone should know about it. Thus, we seem to confirm our adequate view of the world (our ego rejoices).
If the plan does not work and everything does not go the way we wanted, then the ego turns on a defense mechanism, blaming external factors. The ego doesn’t like to feel wrong. Nassim Taleb gives examples where people (in our case, investors/traders) become overconfident by achieving some kind of success in the financial markets. A person can achieve success not only based on their knowledge and experience but simply by being in the right place at the right time. This is the trap that subsequently leads these same people to financial losses, erasing all their past achievements.
Principles. Ray Dalio
The hedge fund Bridgewater Associates has $150 billion under management and is one of the most reputable funds on Wall Street. It is Ray Dalio who is the founder of this fund, having formed it more than 40 years ago. Ray has been called the Steve Jobs of the world of financial markets – an extraordinary approach to business, an effective team, and established principles, which are discussed in detail in the book.
The first part takes the reader to the history of the formation of Bridgewater – a long path from defeat to success. No business is perfect or easy. Bridgewater is no exception. At the first stage of development, Ray Dalio managed to go bankrupt and was left without a team. 5 years after the failure, he was already with a new team and managed $8 billion.
The second part of the book describes Ray Dalio’s life principles and the third describes corporate ones.
Conclusion
The list of the best books in the world about trading is growing – something new and useful is published every year. As noted above, books cannot teach you how to make money (technically), but they will help to develop financial literacy, as well as a current view of financial markets.
